Palm, Inc. (Nasdaq: PALM) gained 1 7/16 to 53 7/8 Monday following news that the handheld computer maker will join the Nasdaq 100 Index on Monday, November 6th. The move to the high-profile index will give the stock greater visibility.
Palm, spun off earlier this year from 3Com Corp. (Nasdaq: COMS), will replace Global Crossing Ltd. on the index. Global Crossing is moving to the New York Stock Exchange.
“With a market capitalization of over $34 billion, Palm is a pioneer in the field of mobile and wireless Internet solutions and a leading provider of handheld computers,” the Nasdaq Stock Market said. “Palm’s handheld solutions allow people to carry and access their most critical information with them wherever they go.”
Palm, which makes the popular Palm Pilot, was one of the hottest initial public offerings of last spring. The shares tripled in their first day of trading in March, rising 57 1/16 to 95 1/16, after trading as high as 165. The company had been 3Com’s best performing division.
Palm last month reported revenue of $401 million for the first quarter ended September 1st, up 127 percent from a year earlier and 14 percent higher than the preceding quarter. Income before items totaled $23.9 million, or 4 cents per share, better than analysts had expected.
The company said its fall product lineup has been a hit with consumers, and that it is pushing into business and government markets. In addition, Palm and Motorola Corp. recently announced a plan to collaborate on a handheld telephone-computer device.